Economy/Resources - 249. page

Professor He Keng, who is a National People’s Congress Standing Committee member, Vice Chairman of Congress Finance and Economy Committee, and Chairman of China Statistical Society of Education, recently commented that he could not afford an apartment based on his salary. The professor pointed out that there is a bubble in the Chinese real estate market, which is primarily caused by government speculation on both land and housing. He believes that local governments and some “experts” favor the existence of the bubble, because it has brought them profit. He also believes that sooner or later the price will drop.

Source: Global Times, December 15, 2009
http://china.huanqiu.com/roll/2009-12/661145.html

China’s Hu Jintao was in Turkmenistan on Monday December 14, attending the opening ceremonial of the launch of a natural gas pipeline that runs 1,140 miles across three Central Asia nations to the Chinese border, and into the Chinese region of Xinjiang. Kazakhstan’s president Nursultan Nazarbayev, Turkmen President Gurbanguli Berdymukhamedov, and Uzbekistan President Islom Karimov turned the valve of the pipeline with Hu. 

On Monday December 14, China Heaven Creation officially took over the White House Theater in Branson, Missouri, the United States. “It is the very first time that a Chinese cultural enterprise successfully bought a U.S. theater, and is a major achievement of Chinese culture ‘stepping outside,’” said Xinhua. 

Xiao Gang, Secretary of the Party Committee and Board Chairman of the Bank of China, recently advised that the bank is enhancing the research of strategic new industries. It will also support the development of a "low carbon economy." Xiao pointed out that the Bank of China should optimize the structure of its loans to be positively in line with the restructuring process of the economy. Its research is aimed at new financial products and service models. Mr. Gang also commented on the needed improvements in personal financial services, integrated domestic and international business, and risk management.

Source: Xinhua, December 7, 2009
http://news.xinhuanet.com/fortune/2009-12/07/content_12606158.htm

The Chinese State Council Executive Meeting held on December 9 came up with several policies designed to stimulating consumer spending: (1) Continuing of the policy of "Home Appliances to the Countryside"; (2) Extending the "Automobiles to the Countryside" project through the end of next year; (3) Continuing the "Home Appliances Replacement project"; (4) Increasing the subsidies to farm machinery purchases; (5) Expanding the scope of the "Energy Savers’ Project"; (6) Extending the reduction of the sales tax on cars below 1.6 liters; (7) Extending the waiver of business taxes on "individual housing transfers" from 2 years to 5 years; and (8) Deferring various insurance payments by companies with financial difficulties.

Source: Xinhua, December 9, 2009
http://news.xinhuanet.com/politics/2009-12/09/content_12619143.htm

The Central Committee of the Communist Party of China (CPC) and the State Council jointly organized the Central Economic Work Conference, which closed on December 7, 2009.

Xinhua summarizes the five signals from the conference as follows: Synchronize stable growth and acceleration of transformation of the economic development mode. Maintain the current fiscal and monetary policies. Increase the supplies of commercial housing and strengthen residents’ consumption power. Relax residence controls to promote urbanization in small and medium cities. Widen market access and deepen reform to add impetus to development

Source: Xinhua, December 7, 2009
http://news.xinhuanet.com/fortune/2009-12/07/content_12606896.htm

Housing prices in China have risen through the roof and are outside the range of any reasonable income, leaving 85% of families in China unable to buy a residence, disclosed the Chinese Academy of Social Sciences (CASS) in its 2010 Economic Blue Book. Government land supply policy and developers holding land for profit are blamed for the rise in housing prices in 2009.

The blue book indicated a reasonable ratio between house prices and resident’s income is between 3 and 6. However, in 2009, that ratio between city housing and city residents is 8.3, 22.08 for off farm workers, and 29.44 for farmers.

Source: Xinhua, December 7, 2009
http://news.xinhuanet.com/house/2009-12/07/content_12604520.htm

Xinhua Net reported on Nov. 30 that Chinese Premier Wen Jiabao commented on international trade after the China-Europe Summit. Wen said that it was unfair to ask China to increase the RMB exchange rate while applying protectionism against China. He believed the request was actually an effort to restrain China’s development. Wen also suggested that keeping the Chinese currency stable benefits the Chinese economy as well as the recovery of the world economy.

Source: Xinhua, November 30, 2009
http://news.xinhuanet.com/world/2009-11/30/content_12564226.htm